TSW Las Vegas
-- Tradeshow Week, 6/21/2007
Transportation Compromise Won’t Affect CC Upgrade
A plan by Nevada Gov. Jim Gibbons to use Las Vegas bed tax proceeds to pay for transportation projects won’t have an impact on the $890 million enhancement of the Las Vegas Convention Center.
Just as this year’s state legislative session was ending, a compromise was reached among the Las Vegas Convention & Visitors Authority, the Nevada State Legislature and the governor that will cost the LVCVA $20 million a year. However, the impact will be on the authority’s operating budget, not the convention center project, spokesman Vince Alberta said.
Last month, Gibbons proposed reallocating $424 million of the LVCVA’s bed taxes over eight years to the state transportation department for road construction in Clark County, whose streets and highways are suffering from Las Vegas’ recent population explosion.
The authority’s board of directors responded with outrage, saying it hadn’t been consulted by Gibbons and pointing out that LVCVA President and CEO Rossi Ralenkotter was part of a blue-ribbon task force on transportation under former Gov. Kenny Guinn, whose recommendations Gibbons ignored.
According to the agreement, which the legislature approved, the authority will give $20 million per year in room tax revenue to a highway construction fund that, along with $45 million from other funding sources, will be used to repay a $1 billion bond for highway construction.
The LVCVA’s first payment is due in July 2008. In return, state transportation authorities must get approval from the authority for all projects.
“This plan allows us to maintain our aggressiveness in promoting the destination,” Ralenkotter said. “I think it was important that the LVCVA continue its leadership in this issue. … We felt we needed to be part of the solution.”
What amounts to an 8-percent decrease in the authority’s budget will impact operations – including a likely hiring freeze – but not the LVCC enhancement, Alberta said.
“The point of the negotiations was to make sure it wouldn’t impact elements, projected elements or the schedule,” he added. “Everybody involved understood the importance of it.”
Alberta said the convention center team would remain in close contact with show organizers and meeting planners as the enhancement project proceeds. The heavy part of construction on the existing building is still expected to begin early next year.
Teamsters, Contractors Reach Tentative Agreement
Contractors can take down the temporary barriers put up around their properties in preparation for a possible strike by members of Teamsters Local 631. Following a marathon negotiating session, the union has reached a tentative labor agreement with tradeshow general contractors Freeman and GES Exposition Services.
Neither the union nor the contractors would release details of the agreement, pending approval by the local’s membership.
Wayne King, 631’s secretary treasurer, said the bargaining committee sat down at the table at 9 a.m. Friday, June 15, and worked non-stop until an agreement with the contractors was hammered out about 12:45 p.m. Saturday.
In a joint statement, Freeman and GES said, “All parties negotiated in good faith and were committed to reaching a mutually beneficial agreement.” King said the new contract didn’t satisfy all of the Teamsters’ initial demands, but that he thought the membership would “be OK with it.”
Members will vote to ratify the agreement June 30. If the four-year contract is approved, it would be retroactive to June 1. In the meantime, King said, Local 631 leaders would hold workshops to inform members of the agreement’s details before asking them to vote.
“We believe it is a mutually beneficial agreement that meets the needs of Teamsters Local 631, our employees and our customers,” Freeman and GES stated.
Hotel Notes: Echelon is Underway, Flamingo Goes Upscale
• The $1.5 billion Cosmopolitan Resort & Casino will join the ranks of mixed-use upscale properties on the Strip. Set to open in 2009, the resort will include two condo-hotel towers containing 3,000 luxury units and 150,000 sq. ft. of convention and meeting space. In partnership with owner and developer 3700 Associates, Grand Hyatt will manage 1,000 hotel rooms and the condo leasing program.
• Construction crews have broken ground on Boyd Gaming’s multi-property resort, Echelon. At the same time, Boyd boosted the project’s cost from $4.4 billion to $4.8 billion. Due to open in the third quarter of 2010, the 87-acre property will include Hotel Echelon, the Suites at Echelon, the Delano and Mondrian Las Vegas, operated by Morgans Hotel Group, and the Shangri-La Las Vegas, operated by Shangri-La Hotels & Resorts. The Delano and Mondrian will account for $250 million of the additional costs, boosting the price tag for them to $950 million. The property is expected to have 5,000 hotel rooms and 750,000 sq. ft. of meeting and convention space.
• The Flamingo Las Vegas is undergoing the second phase of a room renovation project. The refurbishment of 500 rooms and suites continues the development of the upscale, high-tech GO Room brand, created by local design firm Cagley & Tanner. Phase I introduced the concept, with the renovation of 636 standard rooms and suites in classic Vegas décor. Phase II incorporates three new styles in a revamp of 3,500 more rooms, slated for completion by November. The resort has 73,000 sq. ft. of meeting space.
• The Hard Rock Hotel & Casino has begun its $600 million renovation with plans to upgrade 64 hotel suites. Rooms will undergo a rock ‘n’ roll-themed transformation. Contracted by Morgans Hotel Group, New York-based architect Mark Zeff will transform the entire property. By 2009, Hard Rock plans to add 1,000 hotel rooms and 60,000 sq. ft. of convention space.
• The New Frontier Hotel & Casino has been purchased for $1.2 billion by the Elad Group, an Israeli-owned real estate development firm that is also part-owner of New York’s Plaza Hotel. Elad paid $36 million per acre for the 34.5-acre site, to be dubbed the Plaza in Las Vegas. With completion expected by 2011, the $5 billion multi-use project will feature 3,500 luxury hotel rooms, 300 private residences, a retail and gaming complex, restaurants and convention space. The sale is expected to close July 15, and the site of the existing Frontier will be cleared for construction by next year.
–Lisa Plummer
April Convention Business Slows
Broadcasters, sign makers, software programmers, and health and beauty sales associates were among the attendees at April’s largest Las Vegas conventions. However, according to the Las Vegas Convention & Visitors Authority Executive Summary, the number of conventions in April was down 12.2 percent from a year ago, and overall convention attendance was down 5.8 percent.
Nonetheless, the April economic impact of convention business was only 1.2 percent lower than a year earlier. This dichotomy may be explained by the much higher average daily room rate, up 14.9 percent compared with a year earlier, from $127.53 to $146.53 per night.
LVCVA Public Relations Specialist Jeremy Handel pointed out that higher room rates haven’t seemed to substantially affect overall visitation to Las Vegas, up .4 percent in April over a year earlier and up .6 percent for the year so far.
“We are still quite affordable compared to New York, Chicago and San Francisco,” Handel said. “And, aside from the many entertainment and dining attractions in Las Vegas, we offer most of our hotel rooms in one general area, the Strip corridor. The central location of our hotels is appealing to conventions and to tourists. Budget-conscious visitors can still get bargains, however, especially if they’re willing to go downtown or to outlying locations.”
The LVCVA Executive Summary also reported that year-to-date convention attendance, at 2.75 million, was up .2 percent in April compared with a year earlier and the economic impact for the same period was up 4.8 percent. Average daily room rates rose 12 percent.
–Diane Taylor
More than a pretty face: The people behind the smiles
Editor’s note: This is the second story in a two-part series about the business of tradeshow modeling. For Part 1, go to http://www.tradeshowweek.com/article/CA6449723.html#more.
The attractive contracted talent walking the aisles and exhibits of tradeshows comes from a wide range of backgrounds.
Mostly young men and women, these hosts, hostesses, sales assistants and narrators are independent contractors listed with multiple agencies. They are paid per job and are responsible for their own taxes, benefits and, for the most part, their own wardrobes and transportation.
Conversation about a personal life can distract from the job, so clients often don’t know the people behind the smiles.
As an independent contractor, April Marie Smith considers herself a “business owner.” These days she is busy but, like most talent, she admits to a slow period following Sept. 11. Based in Los Angeles, Smith regularly travels to Las Vegas and other convention cities. An actress who is comfortable narrating with use of an ear prompter, she hopes someday to host a children’s television show.
Tradeshow newcomer Sarah Ziehm is a student at the University of Nevada Las Vegas. Even after just a few jobs, she knows she loves the good pay and opportunity to meet new people. The gown she wore on her most recent assignment made its initial appearance at a UNLV homecoming dance.
Victoria Sins, the current Mrs. Nevada, earns a full-time living as tradeshow and print talent. She has a business degree and, with her husband, also owns a mortgage company. At the JCK Show – Las Vegas, she promoted platinum jewelry, wearing a $30,000 designer gown and more than a half-million dollars in jewelry. (And yes, security guards were nearby.)
Twenty-year tradeshow veteran Stuart Rich (host, narrator and actor) noted that, in addition to the pay, the opportunity “to learn so much about a variety of products” is an appealing part of tradeshow work. Stuart said he keeps his energy high by working out every night, even when he is out of town. “Enthusiasm takes energy, and if I work out, I’ve got it,” he added.
Talent like this can cost thousands of dollars per day, depending on skill level. Agents advise exhibitors to describe the assignment – runway modeling, distributing literature, qualifying customers, acting as a sales assistant, writing orders, narrating a slide show, helping with a special promotion – as well as the hours, job location, name of the contact and expected appropriate attire.
It’s also important to let these contractors know as much as possible about the company, product or convention before the job begins. Send literature, and take time at the beginning of the assignment for training and introductions. The talent wantsto be well-informed.
–Diane Taylor
Whether you stay in the city, or get out of town for a professional event, there are plenty to choose from over the next couple of weeks:
• June 22, 12 p.m., TPC Canyons, golf tournament fundraiser, Las Vegas Hospitality Assn., http://www.lvhospitality.org/
• June 22, 12 p.m., McCormick & Schmicks, CEO-CFO Lunch Meeting (with guest speaker Mark Wayman), Las Vegas Chamber of Commerce, http://www.lvchamber.com/calendar/index.htm
• June 24-27, Stoweflake Mountain Resort & Spa, Stowe, Vt., Summer Educational Conference, Exhibition Services & Contractors Assn., http://www.esca.org/meetings/index.php
• June 26, 11:15 a.m.-1:15 p.m., Four Seasons Hotel – Palm Room, business networking luncheon, Las Vegas Chamber of Commerce, http://www.lvchamber.com/calendar/index.htm
• June 27, 7-9 a.m., Hard Rock Cafe, new member breakfast, Las Vegas Chamber of Commerce, http://www.lvchamber.com/calendar/index.htm
• June 27, 6 p.m., J W Marriot Resort, The Business of Weddings: Getting Your Share (with guest speaker Tammy K. Elliot), Natl. Assn. of Catering Executives, http://www.nace.net/chapters/lv/calendar.html
• June 28, 7:30 a.m., Cili, breakfast and fashion show, Las Vegas Hospitality Assn., http://www.lvhospitality.org/
• June 28, Radisson Newport Beach, Second Quarter Chapter Meeting, Southwest and Pacific Chapter, Professional Convention Management Assn., http://www.pcma.org/
